Technical update: 1 June 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
01 June 2018, 10:22 AM

Volpara Health Technologies (VHT) – buy on weakness

VHT has been trading in a strong up trend since May 2017 which is still firmly intact. The recent price action breached resistance of $0.87 showing that buying interest remains strong. The momentum indicators are constructive and we favour higher price levels over the medium term. The first potential upside price target is $0.95 however higher price levels are achievable over the long term.

Any short term share price weakness would provide a great buying opportunity.

APA Group (APA) – target reached

In our last update on April 30, 2018 we discussed the bullish implications from the RSI indicator development and the likelihood of the price breaking out of its trading range. The expected breakout has occurred and our initial upside price target of $8.80 has now been reached. At this point there is no signal that the rally is over, however the price is facing dynamic resistance around $9.00 and overbought momentum readings on the RSI indicator. 

Given this resistance we are not lifting our short term price target.

QBE Insurance Group (QBE) – oversold

QBE has been trading in a down trend over the past year which remains firmly intact. The current short term down swing has approached its key support of $9.22 where initial buying interest is likely to arise. The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce in the short term.

The first potential upside price target is $10.20 however the price could overshoot to $10.40.

Galaxy Resources (GXY) – lifting our target

In our last update on April 9, 2018 we discussed the likelihood of the price trading higher and recommended clients buy the stock at $3.04. A strong rally has unfolded over the past two months and our initial upside price target of $3.40 has now been reached.

The daily chart remains constructive and we favour higher prices over the medium term. Therefore, we lift our price target to $4.20.

Southern Cross Media (SXL) – bullish breakout

SXL has been trading in a primary down trend over the past year which appears to be reversing direction. The long term down trend line and the key resistance of $1.25 are both broken upwards, suggesting that higher prices are likely to unfold over the medium term. The first potential upside price target based on the breakout is $1.40.

Over the long term, higher price levels are achievable.

More information

Morgans clients can login to view all recent technical analysis on companies we cover by browsing the research section and filtering by 'technical analysis' in the Market Updates section. If you are interested in finding out more, please contact your nearest Morgans office.

Disclaimer(s): Morgans Corporate Limited was a Joint Lead Manager to the placement and share purchase plan for Volpara and received fees in this regard.

Analyst owns shares in Volpara.

The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents ("Morgans") do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

  • Print this page
  • Copy Link